Getting started in real estate is always a huge jump compared to
a normal, 9-5 career. There are a lot of hurdles along the way and
the fear of losing money never really goes away until you’ve been
in the business long enough. These are the fears that prevent Logan
and Katy Ross, a young couple in Benton, Kentucky, from becoming
full-fledged investors.

Today, Logan and Katy join me today to learn tips about
financing your business and how to almost always guarantee
profitability. I explain why private lending is better than taking
a loan and the formula my team and I use in estimating cost. I
discuss reasons why wholesaling is best when it comes to your first
few projects and how to dominate the market they’re in. I also
share some tips on how to make yourself attractive to private
lenders as well as how to deal with family members as business
partners.

“It doesn't matter how profitable a project
could be if you're not capable of getting to the finish line.” -
Don Costa

On Today’s Episode of Flip Talk:

Logan and Katy Ross' real estate background and why they became
interested in this industry.

Why private lending is superior to hard money.

How to show private lenders you can be trusted with their
money.

A standard formula for estimating costs of rehab.

Running the same or multiple crews for a variety of
projects.

The number of deals per year that determines your entity for
taxes.

The targeted minimum profit return per property.

What I recommend for slower, more rural markets.

Don’s Tips for Getting into Real Estate
Investing:

There's a fine line between acting as an agent or broker and as
a wholesaler. As a wholesaler, you are marketing the contract
only.

Whether it's family or a stranger, you need to treat lending as
a business transaction.

Even if your deal didn't give you a profit, you still owe the
lender 100% of their money.

If you have a flipping business, you don't qualify for capital
gains tax. It becomes ordinary income.

Wholesaling should be the first few projects because it's the
fastest way to a check.

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About the Podcast

Flip Talk with Don Costa is a no BS podcast with the specific goal of giving real, actionable information that you can use to start or grow your real estate business. No fluff, no bull, and no so-called
"experts". Just real knowledge, tips, and tricks from the guys who actually flip houses every day! Subscribe for our weekly episodes and get an inside look at successful house flipping businesses, and learn from real investors who have forged the path of success. Join Don Costa to get tips and tricks on how to implement systems while avoiding common, and costly mistakes. Get the knowledge you need to grow your house flipping business today!